IT Consultant for SME | Why this blog

Why I made this blog?

After 13 years in the industry, I find that Non-technical individuals often hold a misunderstanding of technology, viewing it as either too complex or too simple. This lack of understanding can result in unrealistic expectations and poor decision making when it comes to technology adoption and implementation. To avoid these consequences, it is important for non-technical individuals to have a basic understanding of technology.

Businesses must take a strategic approach to technology to stay competitive and efficient. The key to choosing the right technology is to understand the specific needs of the business, including goals, objectives, and pain points. Additionally, budget and resources, such as IT staff expertise and availability, should also be considered. If an IT employee is not present, it is recommended to hire an IT consultant to assist in the selection process.

By considering these factors, a business can make an informed decision on the right technology to achieve its goals and objectives. Having the right technology in place is essential for success and helps the business stay competitive in the constantly evolving world of technology.

Small businesses often face challenges when it comes to technology due to limited resources, including the inability to hire a full-time IT employee. However, in today’s digital world, technology plays a crucial role in the success of a business, making it an essential component for small businesses to invest in.

This is where this blog comes in. The purpose of this blog is to provide valuable information and insights to individuals with a non-technical background, so they can better understand the importance of technology in business.

Real-world IT failure cases

Target, Huge loss with the IT Project failure.

Target, a large retail chain, decided to implement a new technology called “Advance Planning and Scheduling System” (APSS) in order to improve its inventory management. However, the technology was not compatible with Target’s existing systems, leading to numerous problems and errors. As a result, the company faced frequent out-of-stock situations and was forced to dispose of large amounts of expired food items.

The implementation of the new technology was also plagued by poor planning and execution. Target underestimated the complexity and resources required to implement the technology effectively. The IT team was not adequately trained and equipped to handle the technology, leading to further problems and delays.

The failure of the APSS project had a significant impact on Target’s business. The company faced significant financial losses due to the cost of the technology, the lost sales and the cost of disposing of expired food items. The company’s reputation was also affected by the frequent out-of-stock situations and the public perception of a disorganized and unreliable business.

In the end, Target was forced to abandon the APSS technology and switch to a more established and proven solution. This failure serves as a reminder of the importance of choosing the right technology and properly planning and executing the implementation process.

Woolworths, IT project failure leading to bankruptcy

Target is big, so it can afford the failure, not lucky like Woolworths. Woolworths is a UK based retail business.

In the early 2000s, Woolworths decided to implement a new IT system in order to improve its supply chain and inventory management.

However, the implementation of the new system was plagued by numerous problems and delays. The IT team was not adequately trained to handle the complex technology, leading to frequent downtime and errors. The system was also unable to integrate with Woolworths’ existing systems, causing further problems and inefficiencies.

The implementation of the new system resulted in significant financial losses for Woolworths. The company was forced to write off millions of pounds in bad debt, and the frequent downtime and errors resulted in lost sales and reduced customer confidence. The failure of the IT project was a major factor in Woolworths’ eventual bankruptcy in 2008.

The case of Woolworths serves as a reminder of the importance of proper planning and execution in IT projects. Businesses must be prepared to invest the necessary resources and expertise in order to ensure the success of their IT projects and avoid the costly consequences of failure.

HealthSouth Corporation, IT project failure leading to bankruptcy

HealthSouth was a leading provider of rehabilitation and long-term healthcare services, but in 2003, the company was embroiled in a massive accounting scandal and filed for bankruptcy. One of the contributing factors to the scandal was a failed IT project to integrate its financial reporting system. The IT project was supposed to streamline the company’s financial reporting and increase efficiency, but instead, it resulted in a mess of duplicate and conflicting information that made it difficult to accurately report financial results. This IT project failure ultimately contributed to the company’s downfall and its bankruptcy filing. This case highlights the importance of properly managing IT projects and ensuring that they are completed on time and within budget, in order to avoid similar consequences.

BHS, IT project failure leading to close

BHS was a household name in the UK, but in 2016, the company went into administration and eventually closed down, putting 11,000 jobs at risk. The cause of the company’s downfall was largely attributed to a poorly managed IT project, which aimed to integrate the company’s online and in-store systems. The IT project was plagued by delays and technical issues, causing significant financial losses for the company. The IT project failure was a major contributing factor to the company’s bankruptcy and ultimate closure, highlighting the importance of carefully managing IT projects and ensuring that they are properly executed.